Our world needs people of action. People who are willing to respond to God’s call by offering hope to others in need. Children and families living in poverty don’t need well-wishers. They don’t need warm thoughts. They need courageous people who act with conviction.
While 2012 was a challenging financial year for World Vision, we give thanks for donations that exceeded $1 billion and ministry impact that grew solidly. Total revenue in fiscal 2012 declined 4% to $1,019 million. Private cash donations, our most important measure of financial health, grew 2% in 2012 to $567 million.
In 2012, 85 percent of World Vision’s total operating expenses were used for programs that benefit children, families, and communities in need.
World Vision’s objective for financial liquidity and reserves is to operate in a prudent range of stability, while recognizing the imperative of distributing maximum funds to mission as quickly as possible. World Vision U.S. remains financially strong, with sufficient liquid assets to discharge ongoing ministry commitments and other obligations. Most of our short-term investments are held in liquid marketable securities. Our investment strategy for long-term assets (primarily pensions, donor advised funds, and endowments) would generally be considered a conservative one.
While 2012 was a challenging financial year for World Vision, we give thanks for donations that exceeded $1 billion and ministry impact that grew solidly. Total revenue in fiscal 2012 declined 4% to $1,019 million. Private cash donations, our most important measure of financial health, grew 2% in 2012 to $567 million. In addition to a difficult economic environment, cash donations in the past year were affected by the absence of a major disaster relief event (with Hurricane Sandy striking after the end of our fiscal year). Importantly, donations to World Vision’s core child sponsorship program rose 3%, and cash funding to the local communities of our sponsored children increased 10%.
Fundraising, management, and general expenses (sometimes called overhead) rose 5% in 2012. Our overhead rate (overhead expenses as a percent of total revenue) increased from 14.4% to 15.7%.
When Rich Stearns became president of World Vision U.S. in 1998, he brought with him 23 years of corporate experience, including his time as CEO of Lenox Inc. Rich holds an MBA from the University of Pennsylvania's Wharton School.
A CPA with more than 25 years' experience in public accounting and corporate finance, Larry directs World Vision's finance, information technology, legal, and corporate services functions.
With nearly two decades of experience serving at World Vision, Joan leads the organization's mass market and private donor fundraising, public policy, advocacy, branding, and media relations efforts. She holds an MA in film and television production and management from the University of Michigan.
Julie has specialized in human resources for more than 20 years. She holds two master's degrees from the University of Southern California and has been part of the World Vision team since 1995.
Chris joined the World Vision team in 2010, bringing more than 20 years of leadership and management experience. Chris holds an MBA in Strategic Quality Management from Eastern Michigan University.
Kent joined World Vision in February 2011 after more than three decades serving in U.S. Government, academic, and nonprofit leadership roles. As head of international programs for WVUS, Kent collaborates with the international partnership of World Vision to help facilitate the overseas allocation of resources from government grants, corporate donated goods, and individual donors.